Working Days will be Reduce, Will it Impact your Salary: New Labor Law

If the new labor code comes into force, he or she will have to work four days a week instead of six from next year.
New Labor Law

New Labor Law

Image Credit: PIPA

If the new labor code comes into force, he or she will have to work four days a week instead of six from next year. That is, employees will get three days off in a week. While the law may seem like a good idea to take three days off a week, there is talk of some negative consequences. According to the new labor code, the amount of salary will be reduced.

This will be applicable from the upcoming financial year

The central government will implement the new labor code. The new code is expected to be effective in the next financial year. This code will be applicable only if the workweek is four days, employees will have to work 12 hours a day. Despite the new code, 48 hours of work will have to be completed every week.

Conditions are likely to be implemented soon

Four labor codes on wages, social security, industrial relations, occupational safety, health, and working conditions are likely to be implemented by the next financial year. So far 13 states have published the draft rules in this matter. A senior official said the Center has already finalized rules under these codes and now states need to frame their own rules, as labor is a concurrent subject. It is believed that after these rules, employees can also be given the option of working only four days a week.

<div class="paragraphs"><p>New Labor Law</p></div>

New Labor Law

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Wage codes have already been published by 24 states and UTs

Union Minister for Labor, Employment and Environment Bhupendra Yadav, in a reply in Rajya Sabha earlier this week, said the Occupational Safety, Health and Working Conditions Code is the only code on which at least 13 states have pre-empted the draft rules. - has been published. Most of the draft notifications on wage codes have already been published by 24 states and union territories. At the same time, the Industrial Relations Code is followed by 20 states, and the Social Security Code is followed by 18 states.

They will have to work 48 hours a week

<div class="paragraphs"><p>New Labor Law</p></div>

New Labor Law

Image Credit: India TV News

According to the information, the new rules are likely to increase the maximum working hours daily. It is believed that the government can increase the working hours to 12. However, only 48 hours a week will have to be worked. If a person works 8 hours a day then he has to work 6 days a week. Accordingly, a person working for 12 hours will have to work four days a week.

States want to make rules in their favor

Four labor codes on wages, social security, industrial relations, and occupational safety, and health and working conditions are expected to come into force in the next financial year. A senior official told PTI that at least 13 states have prepared the draft of the bill.

The central government has finalized the rules in the code of conduct. Now the states want to make rules in their favor. The central government had completed the process of finalizing the proposed rules in these codes in February 2021. Since labor is a contemporary issue, the Center wants the state government to implement these rules at the same time.

Trial for addition in lessenings like PF

After the implementation of the new labor law, the wages received by the employees will also be affected. Companies will have to bear the burden of higher PF liability. According to this, the basic salary should be 50 percent or more of the total salary. This will change the salary structure of most of the employees. With the increase in basic pay, the amount deducted for PF and gratuity will increase.

<div class="paragraphs"><p>New Labor Law</p></div>

New Labor Law

Image Credit: DNA India

Pay will be less in the hand of the employee

According to the new code, changes will be made in the take-home salary and PF structure. This will reduce your take-home salary. In such a situation, there is going to be an increase in the Provident Fund (PF).

Take-home salary will be reduced

The new law will significantly change the way employees base their basic wages and provident funds. There is also an advantage of this that the contribution in your PF account will increase every month. Under the new pay code, allowances will be limited to 50 percent. That is, 50 percent of the total salary of the employees will be the basic salary. Provident fund is calculated based on the percentage of basic pay, which includes basic pay and dearness allowance.

The salary structure will be got changed

An employee's cost to the company (CTC) consists of three to four components. Retirement benefits like Basic Salary, Rent Allowance (HRA), PF, Gratuity and Pension, and other options for LTA and tax saving. Now under the proposed new code, allowances cannot exceed 50 percent of the total pay at any cost. In such a situation, if the salary of an employee is Rs 40,000 per month, then his basic salary should be Rs 20,000 and his remaining allowance should be Rs 20,000.

<div class="paragraphs"><p>New Labor Law</p></div>

New Labor Law

Image Credit: SAG

Committee system important part of Parliament: Yadav

At the same time, Bhupendra Yadav on Sunday described the committee system as important for Parliament. "The report of the Standing Committee of Parliament should not be leaked as leaders of different parties discuss the agenda of the committee at the time of meeting and only after the committee places its final report in the House," he said at an awareness program organized for media persons. It should be public.

Discussion in parliament on the new labor law

The Union Minister said that there are a total of 24 committees related to the departments in the Parliament. Of these, 16 belong to the Lok Sabha and eight to the Rajya Sabha. At the same time, the appointment of the chairman of the committees is dependent on the number of members of the political parties. The chairman of parliamentary committees is appointed by the chairman of the Rajya Sabha and the speaker of the Lok Sabha.

<div class="paragraphs"><p>New Labor Law</p></div>
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